Corporation is a publicly-owned company whose shares are traded on a Philippine Stock Exchange. At December 31, 2020, B had 25,000,000 shares of P10 par value Ordinary Shares authorized, of which 15,000,000 shares were issued and 14,000,000 shares were outstanding. The shareholders' equity accounts at December 31, 2020, had the following balances: P150,000,000 Ordinary Shares Share Premium 80,000,000 Retained earnings 50,000,000 Treasury share 18,000,000 During 2021, B had the following transactions: a. On February 1, 2021, a secondary distribution of 2,000,000 shares of P10 par value Ordinary Shares was completed. The share was sold to the public at P 18 per share, net of offering costs, b. On February 15, 2021, B issued at P 10 per share, 100,000 shares of P 100 par value, 8% cumulative Preference Share with 100,000 detachable warrants. Each warrant contained one right which with P20 could be exchanged for one share of P10 par value Ordinary Shares. On February 15, 2021, the market price for one share right was P 1. C. On March 1, 2021, B reacquired 20,000 shares of its Ordinary Shares for P 18.50 per share. B uses the cost method to account for treasury share. d. On March 15, 2021, when the Ordinary Shares was trading for P21 per share, a major shareholder donated 10,000 shares which are appropriately recorded as treasury share, e. On March 31, 2021, B declared a semiannual cash dividend on ordinary share of P0.10 per share, payable on April 30, 2021, to shareholders of record on April 10, 2021. The appropriate law prohibits cash dividends on treasury share, f. On April 15, 2021, when the market price of the share rights was P2 each and the market price of the Ordinary Shares was P22 per share, 30,000 share rights were exercised. B issued new shares to settle the transaction. 8. On April 30, 2021, employees exercised 100,000 options that were granted in 2004 under a non- compensatory share option plan. When the options were granted, each option had a pre-emptive right and entitled the employee to purchase one share of Ordinary Shares for P20 per share. On April 30, 2021, the market price of the Ordinary Shares was P23 per share. B issued new shares to settle the transaction. h. On May 31, 2021, when the market price of the Ordinary Shares was P 20 per share. B declared a 5% share dividend distributable on July 1, 2021, to shareholders of record on June 1, 2021. i. On June 30, 2021, B sold the 20,000 treasury shares reacquired on March 1, 2021, and an additional 280,000 treasury shares costing P 5,600,000 that were on hand at the beginning of the year. The selling price was P25 per share. j. On September 30, 2021, B declared a semiannual cash dividend on Ordinary Shares pf P0.10 per share and the yearly dividend on Preference Share, both payable on October 30, 2021, to shareholders of record on October 10, 2021. The appropriate law prohibits cash dividends on treasury share. k. On December 31, 2021, the remaining outstanding rights expired. 1. Net income for 2021 was P25,000,000.